Gold Price Prediction for December 9, 2016

Gold prices edged lower on Thursday as the dollar gained traction following the ECB decision to taper its bond purchases when the current program ends in March. The extension will continue to see large bond purchases but at 60 billion per month as opposed to 80 billion per month. A stronger dollar generates headwinds for gold prices, as gold is priced in U.S. currency and makes it more expensive outside the United States.

Gold prices are oversold, with the relative strength index (RSI) which is a momentum oscillator that measures overbought and oversold levels, printing a reading of 29, which is below the oversold trigger level of 30 and could foreshadow a correction. Resistance on gold is seen near the 10-day moving average at 1,177, while support is seen near the December lows at 1,157.